Pakistan’s reported $1.5 billion defence agreement with Sudan has been placed on hold after Saudi Arabia reportedly stepped back from financing the deal and requested its termination, according to Reuters citing diplomatic and security sources.

The arrangement involved the supply of weapons and fighter jets to Sudan and had reportedly reached an advanced stage earlier this year. Saudi Arabia was initially seen as playing a facilitation role in the agreement. However, later developments saw Riyadh withdraw financial backing, effectively stalling the deal and leading to instructions to pause the process, sources said.

The move comes amid Sudan’s ongoing conflict between its armed forces and paramilitary groups, a crisis that has drawn in multiple regional and global stakeholders and continues to worsen the humanitarian situation in the country.

Pakistan has in recent years shown greater interest in expanding its defence exports, particularly as global attention on its military equipment increased following regional tensions last year.

Saudi Arabia remains one of Pakistan’s key strategic and financial partners, and its decision to step back from the arrangement is seen as significant given its broader influence in such deals. Some reports also suggest that concerns raised by Western partners regarding involvement in proxy conflicts may have contributed to Riyadh’s position.

The development has also created uncertainty around other reported defence-related engagements in the region. Neither Pakistani nor Saudi authorities have officially commented on the matter, while Sudanese officials have also remained silent.